Bryan Cave's "When What Goes Down Comes Up – Reporting NEO Compensation Restoration" addresses the important topic of whether and how to disclose compensation increases reflecting a restoration of COVID-prompted previously reduced pay. Importantly, the firm advises companies not to assume that a restoration/increase should be reported under the same Form 8-K item as the reduction. Rather, each situation warrants a new, fact and materiality-specific analysis that may lead to a different conclusion and that may take other factors into account such as comparable actions that have been taken with the balance of the workforce.
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